Judge Myron H. Thompson of U.S. District Court for the Middle District of Alabama in Montgomery said while Palmer's charges are “deeply troubling,” there was no evidence that Bangalore, India-based Infosys had violated Alabama state law.

Compromises she offered, including wearing a hijab in colors matching her uniform and bearing a Disney logo, were rejected by the company, while Boudlal rejected Disney's suggestion she work elsewhere in its complex away from public view, according to the lawsuit.

Said one attorney, in cases where off-color language is used, the ruling signifies the importance of finding out 'how that language was used to determine what steps the employer should take and how they should go about investigating' it and imposing discipline.